The ownership costs associated with complex systems may be difficult to thoroughly understand for a variety of reasons. First, these systems typically include a multiplicity of interrelated components. Thus, the sheer number of components poses one set of challenges. Moreover, because these components interrelate to one another, the maintenance costs of one component may reflect in part, or in whole, costs associated with maintaining another component. Accordingly, the accounting of certain expenses may be duplicated or missed. Likewise, an operation on one component may involve, or require, operations on another component. Thus, the costs associated with the various operations interrelate to each other. The cost structure of a complex system may therefore be convoluted enough to evade ready understanding.
Moreover, these complex systems may be associated with larger systems involving additional complex systems. One exemplary complex system that incorporates other complicated machines is the Space Shuttle. Clearly, the Space Shuttle is a complex system that incorporates many high technology subsystems including for example, three Space Shuttle Main Engines (SSME). In turn, each SSME includes numerous assemblies, sub-assemblies, and components such as an electronics subsystem a power head, an injector, and a nozzle. In turn, the de-composition may continue until the smallest or simplest components are identified (e.g. a one-piece propellant duct in the power head).
Because the operation of such complex systems has proven to be costly, institutional pressure exists to reduce the cost of operations. However, reducing the cost of ownership associated with these systems requires an understanding of the complex cost structure. Thus, a need exists for a simple, easy to manipulate, cost model for such complex systems.